Leases

12 Months Ended

Dec. 31, 2025

15. Leases

Operating lease expense was $1.0 million and $1.0 million for the years ended December 31, 2025 and 2024, respectively, and is reported as “Cost of sales,” “Engineering, design and product development expense,” “Selling and marketing expense,” and “General and administrative expense” in the Consolidated Statements of Operations. Operating costs include short-term lease costs.

On November 3, 2025, the Company entered into a third amendment to its corporate headquarters lease in Hamden, Connecticut, extending the lease term from November 1, 2025 through December 31, 2029 and reducing the area of the leased premises from approximately 11,000 square feet to 3,630 square feet.

The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):

	Years Ended December 31,
	2025		2024
Operating cash outflows from leases	$	1,073	$	1,022

The following summarizes additional information related to our leases:

	Years Ended December 31,
	2025			2024
Weighted average remaining lease term (in years)		2.3			1.2
Weighted average discount rate		9.1	%		7.7	%

The maturity of the Company’s operating lease liabilities are as follows (in thousands):

	December 31, 2025
2026	$	376
2027		82
2028		82
Thereafter		82
Total undiscounted lease payments		622
Less imputed interest		61
Total lease liabilities	$	561

For details regarding the new lease agreement for a new facility in Las Vegas, Nevada, see Note 18 – Subsequent events.

TRANSACT TECHNOLOGIES INC 10-K